Just a little background about Warren Buffett before we start to give him a bit of credibility in order for you to trust what he says. - he’s a billionaire. Ok, there ya have it. I hope that intro will convince you to follow his 5 rules and incorporate them in your decisions. Now let's carry on to the quotes.
Warren Buffett Quotes on Finance
Warren Buffett Quote on Spending
“If you buy things you do not need, soon you will have to sell things you need.”
You must be able to identify the things you need and the things you want. If you’re low on cash, only buy the things you need. Control your urge. Do not spend beyond your means unless you wanna go broke in an instant.
Warren Buffett Quote on Investment
“Do not put all your eggs in one basket.”
You must know how to diversify. Do not invest too much in only one business. Make sure you always have other investments up your sleeve. If one of your investments goes down the drain, you still have others to keep you afloat.
Warren Buffett Quote on Savings
“Do not save what is left after spending, but spend what is left after saving.”
Most of us are accustomed to save whatever is left of our money after we spend. But according to Warren Buffett, the right way is to have a set percentage to save each month before you go about and spend. For instance, you can make a pact to save 50% of your income per month, and the rest could be spent on needs and wants. This would allow you to save a lot more money that can be used in the future.
Warren Buffett Quote on Earnings
“Never depend on single income. Make investment to create a second source.”
Don’t just settle at being employed. Yes, it’s good that you have a job. But you must aim bigger. You must strive to have a second or third or fourth source of income. Search for investments that suit you. Start your own business. Write a book.
Warren Buffett Quote on Taking Risks
“Never test the depth of the river with both feet.”
Always have an exit strategy. Every investment that you enter into has a risk involved. You always should have a plan on how to get out of the investment in case things go bad.